INTERNATIONAL CONTAINER Terminal Services, Inc. (ICTSI) saw a 4.6% rise in its attributable net income in the second quarter to $159.19 million after booking higher revenues from port operations.
“ICTSI’s diversified portfolio, operational discipline and the determined focus from our fantastic team around the world has enabled us to deliver another strong financial performance,” Enrique K. Razon, chairman and president of ICTSI, said in a regulatory filing on Monday.
For the three months ended June, ICTSI’s top line reached $628.47 million, 13.5% higher than the $553.64 million booked in the previous year.
Revenues from port operations accounted for 94.3% of the total revenues or $592.73 million, which shows a 10.9% increase from the $534.64 million seen last year.
Second-quarter total consolidated throughput was 8.7% higher at 3.17 million twenty-foot equivalent units (TEUs) from 2.92 million TEUs handled a year ago.
In the first semester, ICTSI’s attributable net income amounted to $357.55 million, up 28.1% from $279.02 million in the year prior, which the company attributed to higher income and lower coronavirus-related expenses.
The company’s gross income for the first six months of the year reached $1.22 billion, 11.1% higher than the $1.1 billion booked a year ago.
Expenses from January to June were $787.51 million which represents a 12.2% increase from the $702.07 million recorded last year.
However, the company said that the higher first-half top line and lower first-half costs were tapered off by the impairment of goodwill attributed to Pakistan International Container Terminal (PICT).
“Excluding the impairment of goodwill attributed to PICT, net income attributable to equity holders would have grown 10% to US$324.41 million,” the company said.
In the six months ended June, ICTSI handled a consolidated volume of 6.28 million TEUs showing a 9.1% increase from the 5.75 million TEUs handled last year.
“The increase in consolidated volume was mainly due to the contribution of Manila North Harbor Port, Inc. that was consolidated starting September 2022, improvement in trade activities, and new services at certain terminals,” the company said.
ICTSI said the volume was tapered by the expiration of a concession contract at PICT and the cessation of cargo handling at Makassar Terminal Services and Davao Integrated Port and Stevedoring Services Corp.
CAPITAL EXPENDITURE“We have a robust balance sheet and a highly cash generative business which looking ahead, will enable us to continue our strong track record of investing in our terminals to support future growth for the benefit of all our stakeholders,” Mr. Razon said.
For 2023, the company earmarked $400 million for capital expenditure, which will be used to expand and improve productivity in its terminals in Australia, Mexico, Philippines, Democratic Republic of Congo, and Nigeria.
“These investments are examples of our ongoing commitment to make our ports more efficient, accessible and globally competitive,” he said.
From January to June, the company’s capital expenditures excluding borrowing costs amounted to $152.23 million.
These were used for the expansions and acquisition of equipment at Contecon Manzanillo S.A., Victoria International Container Terminal, Manila International Container Terminal, and ICTSI DR Congo S.A.
At the stock market on Monday, shares in ICTSI went down by P3.20 or 1.57% to P201 each. — Justine Irish D. Tabile